Sumitomo Mitsui Financial Group (SMFG), the parent company of Japan’s second-largest bank, Sumitomo Mitsui Banking Corporation (SMBC), is preparing to launch its own stablecoin, marking a significant step in its strategy to modernize cross-border payment systems using blockchain technology.
In a move aimed at improving the speed and efficiency of international payments, SMBC has partnered with Ava Labs, the developers of the Avalanche blockchain, and Fireblocks, a leading platform for digital asset custody and transfer. The goal is to offer immediate, 24/7 cross-border payments that could reduce reliance on traditional infrastructure like SWIFT, which is often hindered by time zone differences and intermediaries.
The project is set to enter its pilot phase in the fourth quarter of 2025 or early 2026, in collaboration with Japanese IT firm TIS. If successful, the stablecoin will be officially launched later in the year.
This initiative is part of a broader effort by SMBC to enhance global payment systems. In 2024, SMBC, alongside Mitsubishi UFJ Financial Group (MUFG) and Mizuho Financial Group, participated in “Project Pax,” a blockchain-based payment initiative.
SMBC’s blockchain journey began in February 2019 with the completion of a blockchain proof of concept for the Marco Polo trade finance platform, developed by R3. The bank also collaborated with Contour, a Singapore-based platform, to digitize its trade finance services in 2020.
SMBC’s move towards stablecoins reflects a growing trend among major financial institutions, such as JPMorgan and Citi, who are also exploring blockchain solutions to streamline payment systems.
Related topics:
Nigeria Accuses Binance of Facilitating Terrorist Financing
ICE Partners with Circle to Boost USDC in Finance
Crypto Market Struggles: BTC, ETH, SOL, XRP, SHIB, DOGE, and Others in Red
